Improvement Tool
the Al & Dee Real Estate Group at RE/MAX by the Gulf 

    

The Federal Housing Administration's 203(k) program is a valuable, if little known, incentive for buyers to purchase distressed properties.

   Nearly 4 million foreclosures filings default notices, scheduled foreclosure auctions and bank reposessions were reported on 2.8 million U.S. properties in 2009, according to RealtyTrac. Most of these properties will end up on the market, often at substantial discounts that might attract buyers looking for a bargain.

   But a key government program, the 203(k) loan, has the potential to make foreclosed properties much more attractive to potential buyers.

   Created by the U.S. Department of  Housing and Urban Development (HUD) in 1978, the 203(k) is an FHA-guaranteed loan that provides funds to help buyers purchase and renovate a home. In this program a borrower can obtain just one mortgage loan, at a long term fixed to finance both the acquisition and the rehabilitation of the property.

203(k) Details
What: A 203(k) is a HUD/FHA-guaranteed loan that provides funds for the purchase and renovation of a home.

Requires: A 3.5 percent down payment and compliance with standard FHA guidelines and loan limits (ranging up to $729,750) for 15 or 30-year mortgage.

FHA loans: Are available to those with marginal credit; are easiest to qualify for; can be processed with a downpayment that is gifted; are assumable; and have no repayment penalties.

Find out more about 203(k) loans and to obtain a list of currently available properties in need of repairs that qualify for this incentive program. Call us at 228.374.0002 or at al@alndee.com

  

NEED A CMA? Or do you know of someone who may need to know their home's worth? Perhaps you would like to know what the home down the street sold for? Regardless, give us a call and we'll get right on it. Call us at 228.374.0880 or send us an email and we'll call you right away.

Contributed by Al & Dee Allegue
Contact Us | (228) 374-0002 | www.alndee.com
Complimentary Mississippi Gulf Coast Real Estate Search

Beat Tax Credit Deadline With Checklist
the Al & Dee Real Estate Group at RE/MAX by the Gulf 

   Wouldn't be great to have a home-buying checklist? Something you could stick in your pocket so you remember to ask all the right questions when you start looking for a home in Biloxi, Ocean Springs, Gulfport or pretty much any city on the Mississippi Gulf Coast?

   As we count down the final weeks to take advantage of the $8,000 first-time home buyer tax credit and $6,500 long-term homeowner tax credit, it's helpful to have a checklist all home buyers can turn to. So here it is!

• Pull a copy of your credit report. For about $9 you can see, and get a copy, of your credit history. Places like www.annualcreditreport.com offer the history of the three major reporting agencies (Equifax, Experian and TransUnion) for free. Take a look at what you have... you never know. Remember everything can be fixed. If you have an item that should not be there, you can have it removed, but you have to work at it.
• Gather your paperwork. Collect documents a lender will ask you to provide. These include two month of bank records (savings and checkimg), W2, and two years of tax filing records. If you are self-employed, the lender will ask for a few additional documents such as a Profit and Loss Statement and annual budget.
• How much can you really afford. Just because a lender says you can afford a $3,000 monthly mortgage note doesn't mean you can jump on it. Sit down with your mate (if you have one), look at your financial goals and objectives and determine what you can afford every month to pay for mortgage. Please don't forget to estimate your annual taxes and insurance... specially your insurance - liability, flood and wind.
• Shop around for a mortgage. Talk to at least five different lenders. Most lender will offer 15 and 30 year fixed mortgage rate.  As an average, getting pre-funded before you negotiate a contract to buy a home saves about $5,000. When shopping for lenders ask to see a copy of their Good Faith Estimate and compare them side by side.  This estimate identifies the cost a lender will charge you to give you the loan.
• Understand the difference between what you want and what you need.  Just because you want a five bedroom home with five bathrooms and a pizza over in the kitchen doesn't necessarily means you need all that. The concept is to get everything you absolutely need in a property and a few things you want - without breaking your bank account.
• Identify the neighborhood you want. Write down the type of neighborhood you want. From sidewalks, to near parks, to even being close to shopping, hospitals, schools and highwayd. Drive around similar neighborhoods and get the feeling of it in the morning, in the evening, at night and on the weekend.
• Shop for a real estate agent. Interview at least three real estate professionals for the best qualifications. You want to think about selecting a seasoned agent (15 years or more experience) instead of your aunt Millie who does this part time. Select an agent certified in working with buyers (ask to see an ABR designation) and a Certified Residential Specialist (CRS) experience certification. Select an agent who works in a team concept, instead of an agent working alone. Having a team of specialists in each area of real estate, such as research, negotiations, and closing activities, gives you the advantage. We like to be one of those agent you interview. Call us at 222.374.0002 and check out our web site at www.alndee.com.
• Understand the true value. Do you homework and ask questions of your agent such as: (1) What is the current list to sell ratio in a neighborhood you like; (2) what is the absorption rate in this neighbrohood; (3) what is the average days on the market in this neighborhood; (4) is there a monthly homeowners association; (5) check the flood maps and see if you would need additional insurance.
• Preview homes on the MLS first. Before going out driving around looking at homes, sit with your real estate agent and look at selected homes that are, at that moment, available for sale. Don't rely on home magazines. It takes about three weeks to submit and ad to a magaznine and by the time it's printed and distributed, most homes have already been sold.  Besides, on the MLS you'll have an opportunity to see a virtual tour, and many interior and exterior photos of a home. Usually you'll get rid of about 50% of the homes you were planning to see. Don't see more than five homes in one day as they tend to look the same after a while. Bring your digital camera and take photos of the home you like the best. A selection formula we use is always compare each home with another one and have in mind the best three homes.
• Negotiate an offer. Work with your agent and determine a reasonable offer. Too low of an offer and you'll insult the seller (and he/she won't play anymore). Make it too high and you'll pay more than the home is worth. Have your agent complete a market analysis (CMA) of the home.  As of this writting most homes on the Mississippi Gulf Coast are selling for abot 95% of the list price. However, this percentage varies from neighborhood to neighborhood. Consider who pays for the closing costs... this is where the Good Faith Estimate you have from your lender is critical.
• Don't panic. Once the offer has been accepted let your agent take care of the under contract activities. There are a lot of them... home inspections, well and septic inspections, air and mold inspections, appraisal and termite inspection, environmental inspections, and lien and title examinations. Stay focused and talk to your agent at least twice a week.  Please, please, please, do not go on a buying trip of furniture, cars, curtains, appliances. These purchases may increase your income-to-debt ratio and may, a few days before closing disqualify you from the loan.

   Clip this home buying checklist and keep it in your pocket, so that you're always making a smart move.

NEED A CMA? Or do you know of someone who may need to know their home's worth? Perhaps you would like to know what the home down the street sold for? Regardless, give us a call and we'll get right on it. Call us at 228.374.0880 or send us an email and we'll call you right away.

Contributed by Al & Dee Allegue
Contact Us | (228) 374-0002 | www.alndee.com
Complimentary Mississippi Gulf Coast Real Estate Search

Foreclosure is Not the Only Option
the Al & Dee Real Estate Group at RE/MAX by the Gulf 

Chances are, you or someone you know in Biloxi, Gulfport or Ocean Springs is facing the possibility of foreclosure. But you need to understand that you are not alone and this can be resolved.

Today, nearly 1 out of every 6 homeowners in America is behind on mortgage payments. These are tough and frustrating times. Now more than ever, it's important to identify your options. Foreclosure can be avoided, your credit can be saved, and your financial future can be salvaged.

Through our experience handling distressed properties at the Al & Dee Real Estate Group at RE/MAX by the Gulf, we've found that homeowners today have more questions than answers about their circumstances. We have created a web page to help you understand the possible solutions to foreclosure, as well as provide a detailed explanation of short sales, which may be the best course of action for some homeowners. Avoid Foreclosure.

You may also have noticed that we're offering you a FREE Report to explain your options and help you decide on a course of action. The idea of losing a home can be overwhelming, and we feel it is vital for you to have all the facts necessary to make an informed decission.

As agents with the Certified Distressed Property Expert (CDPE), we have a strong and unique appreciation of the factors affecting the market, and you know that there are options available to you.

NEED A CMA? Or do you know of someone who may need to know their home's worth? Perhaps you would like to know what the home down the street sold for? Regardless, give us a call and we'll get right on it. Call us at 228.374.0880 or send us an email and we'll call you right away.

Contributed by Al & Dee Allegue
Contact Us | (228) 374-0002 | www.alndee.com
Complimentary Mississippi Gulf Coast Real Estate Search

The New Home Affordable Foreclosure Alternative 
the Al & Dee Real Estate Group at RE/MAX by the Gulf 

HAFA, the Home Affordable Foreclosure Alternative program will be effective April 5, 2010, and designed for homeowners who have applied for assistance through HAMP, but have had no success with their loan modification or refinance.

First, understand HAFA is voluntary. Lenders who received Federal government funding, also known as TARP Money, are being "encouraged" to participate. Yet, even those lenders are allowed to interpret HAFA guideliness "in accordance with best business practices".  Second, HAFA does not apply to any Freddie Mac or Fannie Mae loans. Eight out of every ten short sale loans are backed by these securities, and that's about 60% of all mortgage in this country.

Bottom line... the HAFA program is expected to streamline the short sale and deed-in-lieu process. Here are the requirements:

• The home must be the principle residence of the homeowner
• The first mortgage must have been taken out on or before Januart 1, 2009
• The mortgage is delinquent or will be in the foreseeable future
• The unpaid balance owned on the first mortgage can not be more than$729,750
• The monthly mortgage payment has to be more than 31 percent of the homeowner's gross income

If you answer YES to all of the above then:

• The homeowner has 14 days to request HAFA assistance after being denied under HAMP
• Lender has 14 days to accept the homeowner into the HAFA program
• Lender establishes the sales price
• Homeowner must work with a certified in distressed sale real estate agent and is allowed 120 days to obtain an offer
• When an offer is submitted, the lender has 10 days to accept or reject the offer
• When the transaction closes then...
  • The lender receives $1,000 from the Federal Government
  • The homeowner receives $1,500 from the Federal Government
  • The first lien holder agrees NOT to pursue collection of any shortage
  • The second lien holder (if any) MAY agrees not to pursue collection of any shortage

As is typical with government programs, this is all explained (note a trace of sarcasm) in an easy to read 43 page document that can be view by following this link.

Still have questions? Give us a call at 228.374.0002 or email us at al@alndee.com

  

NEED A CMA? Or do you know of someone who may need to know their home's worth? Perhaps you would like to know what the home down the street sold for? Regardless, give us a call and we'll get right on it. Call us at 228.374.0880 or send us an email and we'll call you right away.

Contributed by Al & Dee Allegue
Contact Us | (228) 374-0002 | www.alndee.com
Complimentary Mississippi Gulf Coast Real Estate Search 

 

We are very proud to offer our newest listing on the grounds of secluded and private Harmony Estates, Gulfport, Mississippi.  Strategically located near shopping, hospitals, entertainment and Interstates, this custom-built treasure enjoys a superb setting with plenty of privacy. Follow this link to see a over 50 photos of this home

    This three-bedroom beauty in Harmony Estates, Gulfport, Mississippi showcases spaciousness of open living spaces.  Decadent high-ceiling Family Room, Formal Living Room, and Master Bedroom Suite that features generously outfitted Master Bath with plush garden tub and separate shower.  This home defines consummate formal, yet relaxed feeling, exuding style and elegance.  A home built for family living and entertainment.

Local Market
q The Mississipi Gulf Coast is ranked 180^th in the national rank of foreclosure filings. In our estimation 1 out of every 200 homes is in the pre-foreclosure stage, which is an increase of 784% from 2009. 

?£ We found a little good news. Personal income rose a small 0.4% and consumer spending also rose a modest 0.2% resulting in consumers spending less than what they brought home. While pending home sales also increased to 96.6% in December from a 95.5% in November of the same year.

Real Estate Professionals Needed
Yes... our team is still selling more homes than any other real estate professional on the MS Gulf Coast. Regardless of how difficult  the market may be, our Strategic Marketing still sells homes faster and for the most money.  Our agent are on the forefront of the industry.  As a result, our Team and RE/MAX by the Gulf needs people we can train into the real estate career.  If you or anyone you know is interested is learning more, please call Jean at 228.374.0880

NEED A CMA? Or do you know of someone who may need to know their home's worth? Perhaps you would like to know what the home down the street sold for? Regardless, give us a call and we'll get right on it. Call us at 228.374.0880 or send us an email and we'll call you right away.

Contributed by Al & Dee Allegue
Contact Us | (228) 374-0002 | www.alndee.com
Complimentary Mississippi Gulf Coast Real Estate Search